September 8, 2010
District taxpayers will save $2.2 million in interest, thanks to Qualified School Construction Bonds awarded by the state
Gov. Nixon details construction projects financed by no-interest bonds during visit to Liberty North High School
LIBERTY, Mo. - Gov. Jay Nixon went to the brand-new Liberty North High School today to detail construction projects made possible by the award of $4,631,000 in no-interest bonds to the Liberty School District. The Governor toured the high school with district superintendent Mike Brewer to see how the competitively awarded Qualified School Construction Bonds are allowing the district to complete several major construction projects at the school, including the auditorium and main gymnasium.
Earlier this year, Gov. Nixon announced that more than $162 million in no-interest bonds had been awarded for eligible school renovation, construction and development projects. These bonds, awarded by Gov. Nixon's administration and funded by the federal government, allow school districts to undertake major projects without the burden of interest payments.
School districts will save millions of dollars in interest payments over the life of these bonds. Taxpayers in the Liberty School District will save an estimated $2,280,000 in interest. In addition to the Qualified School Construction Bonds, the school district is using $3,369,000 in Build America Bonds, which were made possible through the federal Recovery Act. Gov. Nixon's administration marketed the Build America Bonds to school districts in Missouri to encourage the districts to take advantage of them.
"We want Missouri students to receive a world-class education so that they will stay right here in the Show-Me State to live, work and raise their families," Gov. Nixon said. "Our investment in quality schools and quality teachers will pay off for generations to come. These bonds will help school districts undertake critical development projects, while saving millions for the taxpayers. This is a great deal for Missouri students, school districts and taxpayers."
The $162 million in no-interest bonds includes $146.3 million in Qualified School Construction Bonds and $15.9 million in Qualified Zone Academy Bonds. Both programs have specific eligibility criteria, and funds can be used only for designated purposes. Qualified School Construction Bonds, the larger pool of funds, help districts finance the costs of major new construction or renovation projects.
Qualified Zone Academy Bonds, which have much more specific eligibility criteria, can be used to renovate or repair buildings, purchase technology, or develop new curricula or training programs, but cannot be used for new construction.
Last April, voters in Liberty School District 53 approved an $8 million bond issue. The measure received 64 percent approval. The success of the bond issue helped the district receive $4,631,000 in Qualified School Construction Bonds awarded by the state in a competitive process.
The district is using these bonds and the Build America Bonds to complete Phase II at Liberty North High School, which opened for its first-ever classes last month. Phase II includes space for instruction in the fine arts and industrial technology, as well as space for the district's Project Lead the Way pre-engineering classes. The bonds also will allow the district to finish a field house gymnasium with a capacity of 2,000, and a 900-seat auditorium at the high school.
"As our school district grows in population, the needs for providing a quality education to our student also grow, as evidenced by the building of Liberty North," Superintendent Brewer said. "Next August, we will add a senior class to the high school, requiring additional space. These bonds are making it possible for us to complete this next phase, and save millions of dollars in interest for taxpayers in the district at the same time."
"These bonds are helping school districts complete vital projects that will make our schools better places for students to work and learn," Gov. Nixon said. "These bonds will make a real difference for students and save real money for the taxpayers."